U.S. economy is on the hot topic once again with its payroll processor ADP which just released its estimated number of private-sector jobs which have been created in August. As the forecast predicted, there is huge increase of about 957,000 from the initial number of 167,000 in July, as we bear witness the second wave of CoronaVirus subsiding across the southern and western regions of the U.S. Nevertheless, it is still far from the numbers the market experienced before COVID-19. The result is now 12 million jobs that are left behind. The news surfaced in only 2 months before the election. U.S. stocks opened higher again; market sentiment appears to be linked, to some extent, with Donald Trump’s re-election chances.
Historically from the year 1950, September has had a tendency to be the worst-performing month for stocks. The S&P 500 usually drops 1% this month on average since 1950.
Stocks related to technology continue their rally breaking new records. Those companies who gained from the ‘Working from home’ phenomenon, i.e. Amazon (AMZN), Facebook (FB), Microsoft (MSFT), Netflix (NFLX), and Alphabet (GOOG, GOOGL) are among the big names.
After 30 years of experiencing no recession, Australia ran out of luck. The country faced its first recession in 30 years in the second quarter of 2020. Australia’s economy became smaller by 7% in the last three months. The main reason is that the Chinese demand for commodities, iron, and coal, plummeted.
European data also turned negative overnight. The unemployment rate in Spain is rising by a significant number of 30,000 in August (instead of what had been initially expected: 10,000) Germany retail sales dropped for the second consecutive month.
Weekly Oil data is going to be released on Wednesday 02.09.2020.
The year 2020 can be named the year of Tesla. Shares surged as much as 8% to $479 on Monday after the stock split. Over the past five trading sessions, it skyrocketed by 12%. Tesla bulls are hoping that by September, Elon Musk will introduce its much-expected battery which can last up to 1 million miles. The Tesla bulls are also excited about a potential inclusion into the S&P 500 later this year, which will trigger yet another wave of buying by fund managers.